GreenCap Investments (Pty) Ltd (“GreenCap”), founded in 2015, is a South African company providing financing solutions that help landowners unlock immediate value from long-term notarial leases with renewable energy projects.
It’s shareholders have been active in the renewable energy sector since 2008, with a strong track record in developing, financing, and managing projects. GreenCap has created financing products specifically for landowners with operational renewable energy projects, enabling them to access short-term value from long-term lease agreements. GreenCap is the only company in South Africa to successfully commercialize long-term lease payments in the renewable energy sector – setting it apart in the financial landscape
FINANCING SOLUTIONS
GreenCap is able to provide landowners with more than one approach. All of these will be an upfront lump-sum payment secured against the long-term cashflows from the notarial leases. The simplest of transactions is to purchase the lease but in this case there are Tax implications that might or might not be preferred.
TAX Considerations
GreenCap has obtained a formal tax opinion from a respected South African legal firm on its financing product and can provide a summary of this opinion to landowners for their consideration. However, GreenCap recognizes that each landowner has its own unique ownership structure and tax position and we would recommend that landowners obtain their own independent tax advice, before entering into a transaction with GreenCap.WHAT DOCUMENTS WILL LANDOWNERS SIGN?
The landowner and GreenCap would sign a long term financing and/or lease agreement and a cession of security over the lease revenues that will be paid to the landowner by the renewable energy project.
There will be no requirement for the renewable energy project company to enter into any agreements.